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179.51 (1y: +41%)
Market Cap 8.86 B P/E(ttm) 26.90
Enterprise Value 15 B P/B 17.10
ADS- NYSE (USA)
Alliance Data Systems Corporation
  • Currently 3.5/5
Business Predictability Rank: 3.5-Star
Back Testing Results:
Average gain of all 3.5-Star stocks: 9.3% per year.
% of Stocks that are in still loss if held for 10yrs: 9%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$179.51
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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry		 vs
history
Cash to Debt 0.128
ADS's Cash to Debt is ranked lower than
162866% of the 614 Companies
in the Global Business Services industry.

( Industry Median: 3.79 vs. ADS: 0.128 )
ADS' s 10-Year Cash to Debt Range
Min: 0.02   Max: No Debt
Current: 0.13
Equity to Asset -0.15
ADS's Equity to Asset is ranked lower than
208333% of the 480 Companies
in the Global Business Services industry.

( Industry Median: 0.50 vs. ADS: -0.15 )
ADS' s 10-Year Equity to Asset Range
Min: -0.24   Max: 0.04
Current: -0.15
-0.24
0.04
Interest Coverage 3.3
ADS's Interest Coverage is ranked lower than
201207% of the 497 Companies
in the Global Business Services industry.

( Industry Median: 44.50 vs. ADS: 3.3 )
ADS' s 10-Year Interest Coverage Range
Min: 1   Max: No Debt
Current: 3.3
F-Score: 7
Z-Score: 1.5
M-Score: -2.49
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 10/10

vs
industry		 vs
history
Operating margin (%) 26.80
ADS's Operating margin (%) is ranked lower than
202020% of the 495 Companies
in the Global Business Services industry.

( Industry Median: 9.30 vs. ADS: 26.80 )
ADS' s 10-Year Operating margin (%) Range
Min: 0.4   Max: 173.7
Current: 26.8
0.4
173.7
Net-margin (%) 11.6
ADS's Net-margin (%) is ranked lower than
210526% of the 475 Companies
in the Global Business Services industry.

( Industry Median: 6.00 vs. ADS: 11.6 )
ADS' s 10-Year Net-margin (%) Range
Min: -5.1   Max: 11.6
Current: 11.6
-5.1
11.6
ROE (%) 79.9
ADS's ROE (%) is ranked lower than
215054% of the 465 Companies
in the Global Business Services industry.

( Industry Median: 11.30 vs. ADS: 79.9 )
ADS' s 10-Year ROE (%) Range
Min: -11.5   Max: 838.9
Current: 79.9
-11.5
838.9
ROA (%) 3.5
ADS's ROA (%) is ranked lower than
211864% of the 472 Companies
in the Global Business Services industry.

( Industry Median: 5.50 vs. ADS: 3.5 )
ADS' s 10-Year ROA (%) Range
Min: -2.3   Max: 5.6
Current: 3.5
-2.3
5.6
ROC (Joel Greenblatt) (%) 17.00
ADS's ROC (Joel Greenblatt) (%) is ranked lower than
257069% of the 389 Companies
in the Global Business Services industry.

( Industry Median: 32.90 vs. ADS: 17.00 )
ADS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 12.9   Max: 455
Current: 17
12.9
455
Revenue Growth (%) 13.6
ADS's Revenue Growth (%) is ranked lower than
348432% of the 287 Companies
in the Global Business Services industry.

( Industry Median: 5.90 vs. ADS: 13.6 )
ADS' s 10-Year Revenue Growth (%) Range
Min: -4.5   Max: 18.9
Current: 13.6
-4.5
18.9
EBITDA Growth (%) 17.8
ADS's EBITDA Growth (%) is ranked lower than
446428% of the 224 Companies
in the Global Business Services industry.

( Industry Median: 9.70 vs. ADS: 17.8 )
ADS' s 10-Year EBITDA Growth (%) Range
Min: -32.3   Max: 137.8
Current: 17.8
-32.3
137.8
EPS Growth (%) 27.5
ADS's EPS Growth (%) is ranked lower than
526315% of the 190 Companies
in the Global Business Services industry.

( Industry Median: 11.60 vs. ADS: 27.5 )
ADS' s 10-Year EPS Growth (%) Range
Min: 1.8   Max: 48.2
Current: 27.5
1.8
48.2
» ADS's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

ADS Guru Trades in Q2 2012

Bruce Kovner 2,000 sh (New)
Jim Simons 201,500 sh (+24.54%)
Pioneer Investments 31,300 sh (unchged)
Columbia Wanger 585,000 sh (unchged)
Steven Cohen Sold Out
Jeremy Grantham Sold Out
Ronald Muhlenkamp 199,775 sh (-13.1%)
RS Investment Management 17,190 sh (-41.39%)
» More
Q3 2012

ADS Guru Trades in Q3 2012

Steven Cohen 1,651 sh (New)
RS Investment Management 22,290 sh (+29.67%)
Pioneer Investments 31,300 sh (unchged)
Columbia Wanger 585,000 sh (unchged)
Jim Simons 191,180 sh (-5.12%)
Ronald Muhlenkamp 178,990 sh (-10.4%)
Bruce Kovner 1,440 sh (-28%)
» More
Q4 2012

ADS Guru Trades in Q4 2012

Louis Moore Bacon 5,000 sh (New)
Steven Cohen 2,358 sh (+42.82%)
Jim Simons 261,000 sh (+36.52%)
Columbia Wanger 585,000 sh (unchged)
Pioneer Investments 31,300 sh (unchged)
Bruce Kovner Sold Out
RS Investment Management 22,190 sh (-0.45%)
Ronald Muhlenkamp 176,825 sh (-1.21%)
» More
Q1 2013

ADS Guru Trades in Q1 2013

Steven Cohen 74,574 sh (+3062.6%)
Jim Simons 485,800 sh (+86.13%)
RS Investment Management 36,390 sh (+63.99%)
Ronald Muhlenkamp 177,595 sh (+0.44%)
Pioneer Investments 31,300 sh (unchged)
Columbia Wanger 585,000 sh (unchged)
Louis Moore Bacon Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with ADS

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ronald Muhlenkamp 2011-09-30 Add 37.36%1.46%$81.66 - $100.41 $ 178.4491%235475
James Barrow 2011-06-30 Sold Out 0.04%$83.61 - $95 $ 178.44100%0
George Soros 2011-06-30 Sold Out $83.61 - $95 $ 178.44100%0
Ronald Muhlenkamp 2011-03-31 New Buy2.15%$70.68 - $85.06 $ 178.44131%171770
James Barrow 2011-03-31 Reduce -40.75%0.03%$70.68 - $85.06 $ 178.44131%245400
George Soros 2011-03-31 New Buy$70.68 - $85.06 $ 178.44131%3300
Ruane Cunniff 2010-12-31 Sold Out 0.04%$59.03 - $71.34 $ 178.44173%0
Ronald Muhlenkamp 2010-09-30 Sold Out 1.11%$54.24 - $67.03 $ 178.44200%0
Ronald Muhlenkamp 2010-06-30 Reduce -72.98%0.81%$59.6 - $77.98 $ 178.44156%100000
George Soros 2010-06-30 Sold Out 0.01%$59.6 - $77.98 $ 178.44156%0
Mario Gabelli 2010-06-30 Sold Out $59.6 - $77.98 $ 178.44156%0
David Dreman 2010-03-31 Sold Out 0.09%$53.05 - $67.75 $ 178.44192%0
Premium More recent guru trades are included for Premium Members only!!

Ratios

vs
industry		 vs
history
P/E(ttm) 26.90
ADS's P/E(ttm) is ranked lower than
202020% of the 495 Companies
in the Global Business Services industry.

( Industry Median: 18.70 vs. ADS: 26.90 )
ADS' s 10-Year P/E(ttm) Range
Min: 8.43   Max: 300
Current: 26.9
8.43
300
P/B 17.10
ADS's P/B is ranked lower than
169205% of the 591 Companies
in the Global Business Services industry.

( Industry Median: 1.90 vs. ADS: 17.10 )
ADS' s 10-Year P/B Range
Min: 1.31   Max: 188
Current: 17.1
1.31
188
P/S 3.10
ADS's P/S is ranked lower than
161030% of the 621 Companies
in the Global Business Services industry.

( Industry Median: 1.08 vs. ADS: 3.10 )
ADS' s 10-Year P/S Range
Min: 0.81   Max: 3.2
Current: 3.1
0.81
3.2
PFCF 11.10
ADS's PFCF is ranked lower than
218818% of the 457 Companies
in the Global Business Services industry.

( Industry Median: 16.20 vs. ADS: 11.10 )
ADS' s 10-Year PFCF Range
Min: 3.71   Max: 254.86
Current: 11.1
3.71
254.86
EV-to-EBIT 14.7
ADS's EV-to-EBIT is ranked lower than
189753% of the 527 Companies
in the Global Business Services industry.

( Industry Median: 13.83 vs. ADS: 14.7 )
ADS' s 10-Year EV-to-EBIT Range
Min: 1.7   Max: 37.4
Current: 14.7
1.7
37.4
PEG 1.1
ADS's PEG is ranked lower than
495049% of the 202 Companies
in the Global Business Services industry.

( Industry Median: 1.88 vs. ADS: 1.1 )
ADS' s 10-Year PEG Range
Min: 0.22   Max: 10.88
Current: 1.1
0.22
10.88
Shiller P/E 42.3
ADS's Shiller P/E is ranked lower than
100% of the Companies
in the Global Business Services industry.

( Industry Median: vs. ADS: 42.3 )
ADS' s 10-Year Shiller P/E Range
Min: 12.07   Max: 66.84
Current: 42.3
12.07
66.84

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 1.7
ADS's Price/Net Current Asset Value is ranked lower than
246913% of the 405 Companies
in the Global Business Services industry.

( Industry Median: 11.50 vs. ADS: 1.7 )
ADS' s 10-Year Price/Net Current Asset Value Range
Min: 1.1   Max: 13.4
Current: 1.7
1.1
13.4
Price/DCF (Projected) 1.1
ADS's Price/DCF (Projected) is ranked lower than
393700% of the 254 Companies
in the Global Business Services industry.

( Industry Median: 1.20 vs. ADS: 1.1 )
ADS' s 10-Year Price/DCF (Projected) Range
Min: 0.7   Max: 1.5
Current: 1.1
0.7
1.5
Price/Median PS Value 1.4
ADS's Price/Median PS Value is ranked lower than
168067% of the 595 Companies
in the Global Business Services industry.

( Industry Median: 1.10 vs. ADS: 1.4 )
ADS' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.5
Current: 1.4
0.7
1.5
Price/Peter Lynch Fair Value 1.1
ADS's Price/Peter Lynch Fair Value is ranked lower than
909090% of the 110 Companies
in the Global Business Services industry.

( Industry Median: 1.40 vs. ADS: 1.1 )
ADS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 1.5
Current: 1.1
0.6
1.5
Earnings Yield (Greenblatt) 6.80
ADS's Earnings Yield (Greenblatt) is ranked lower than
191571% of the 522 Companies
in the Global Business Services industry.

( Industry Median: 7.30 vs. ADS: 6.80 )
ADS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.7   Max: 59.1
Current: 6.8
2.7
59.1
Forward Rate of Return (Yacktman) 29.93
ADS's Forward Rate of Return (Yacktman) is ranked lower than
425531% of the 235 Companies
in the Global Business Services industry.

( Industry Median: 10.19 vs. ADS: 29.93 )
ADS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -7.4   Max: 68.8
Current: 29.93
-7.4
68.8

Business Description

Alliance Data Systems Corporation or ADSC is a provider of data-driven and transaction-based marketing and customer loyalty solutions. It offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, marketing strategy consulting, analytics and creative services, direct marketing services and private label and co-brand retail credit card programs. It focuses on facilitating and managing interactions between its clients and their customers through all consumer marketing channels, including in-store, on-line, catalog, mail, telephone and email, and emerging channels such as mobile and social media. The Company captures and analyzes data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. The Company's products and services are reported under three segments-LoyaltyOne, Epsilon, Private Label Services and Credit. It has traditionally marketed and sold its products and services on a stand-alone basis but increasingly market and sell them on an integrated basis. ADSC's LoyaltyOne clients are focused on targeting, acquiring and retaining loyal and profitable customers. The Company use the information gathered through its loyalty programs to help clients design and implement effective marketing programs. Its clients within this segment include financial services providers, supermarkets, drug stores, petroleum retailers and specialty retailers. Epsilon is a marketing services firm providing end-to-end, integrated marketing solutions that leverage transactional data to help clients more effectively acquire and build stronger relationships with their customers. Services include strategic consulting, customer database technologies, loyalty management, proprietary data, predictive modeling and a full range of direct and digital agency services. Through its consulting services, the Company analyzes its clients' business, brand and/or product strategy to create customer acquisition and retention strategies and tactics designed to further optimize its clients' customer relationships and marketing return on investment. The Company designs, builds and operates complex consumer marketing databases for large consumer-facing brands such as Hilton HHonors and the Citi ThankYou programs. The Company's Private Label Services and Credit segment assists some of the best known retailers in extending their brand with a private label and/or co-brand credit card account that can be used by customers at the clients' store locations, or through on-line or catalog purchases. Private Label Services and Credit segment provides risk management solutions, account origination and funding services for more than 100 private label and co-brand credit card programs. The Company performs processing services and provides service and maintenance for private label and co-brand credit
Company Website
SEC Reports
Industry: Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY
Traded in other countries:LID.Germany
» More Articles for ADS

Headlines

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